Governance framework

Government Pension Fund Global (GPFG)

The Storting has, in the Government Pension Fund Act, accorded the Ministry of Finance formal responsibility for the management of the Fund. Operational management of the Government Pension Fund Global (GPFG) is carried out by Norges Bank.

The Ministry has issued provisions on Norges Bank's management of the GPFG in a separate mandate. The mandate describes the general investment framework for the Fund and stipulates requirements with regard to risk management, reporting and responsible management.

GPFG governance framework

The governance structure must ensure that key risk and return decisions, as well as decisions regarding the responsible investment framework, are endorsed by the Storting. At the same time, there must be sufficient delegation of authority to ensure that operational management decisions are made close to the markets in which the Fund is invested. Norges Bank may deviate somewhat from the benchmark index in their operational management og the GPFG, within risk limits stipulated in the mandate. 

Governance hierarchy

The management of the GPFG is based on a governance structure in which the Storting, the Ministry of Finance, Norges Bank's executive board and Norges Bank Investment Management (NBIM) have different roles and responsibilities. Sound control and supervisory bodies are in place at all management levels of the Fund. Regulations and delegation authorisations will necessarily be more detailed further down the pyramid.